ACCOUNT OPENING KIT. Annexure - 1

Transcription

1 Annexure - 1 ACCOUNT OPENING KIT INDEX S.No. Name of the Document Brief Significance of the Document Page No MANDATORY DOCUMENTS AS PRESCRIBED BY SEBI & EXCHANGES 1 Account Opening Form A. KYC form - Document captures the basic information about the constituent and an instruction/check list B. Document captures the additional information about the constituent relevant to trading account and an instruction/check list Rights and Obligations Document stating the Rights & Obligations of stock broker/trading member, sub-broker and client for trading on exchanges (including additional rights & obligations in case of internet/wireless technology based trading). 3 Risk Disclosure Document (RDD) Document detailing risks associated with dealing in the securities market Guidance Note Document detailing do s and don ts for trading on exchange, for the education of the investors Policies and Procedures Document describing significant policies and procedures of the stock broker 25 6 Tariff Sheet Document detailing the rate/amount of brokerage and other charges levied 26 on the client for trading on the stock exchange(s) VOLUNTARY DOCUMENTS AS PROVIDED BY THE STOCK BROKER 7 Personal Information Personal Information of clients 02 8 NSDL Demat Account Opening Agreement To avail NSDL depository services CDSL Demat Account Opening Agreement To avail CDSL depository services Schedule of Charges for Charges for availing depository services 31 Depository services 11 DCN agreement for Demat Account Agreement between the depository participant and the client for providing the statements or communications through internet only Margin Trading Agreement To avail Margin Trading facility Margin Trading POA Power of Attorney for availing Margin Trading facility Additional Terms and Conditions for Broking and Other Products & To avail value added products and services from Geojit BNP Paribas Services 15 Power of Attorney for Broking and Other Products & Services Power of Attorney in favour of Geojit BNP Paribas to operate client s demat account/mutual fund/ipo Pledge Agreement For pledging shares Running Account Authorization by client to retain funds/securities in trading account to meet settlement obligations NRI Undertaking To create awareness about RBI rules and regulations Client Authorization to Third party Client authorization to third party Undertaking from clients on For availing exposure against demat holdings on the F&O segment 76 the F&O segment Geojit BNP Paribas Financial Services Ltd. SEBI Reg. No & Date Exchange NSE Cash NSE F&O NSE CDS BSE Cash BSE F&O MCX-SX Trading/Clearing INB INF INE INB INF INF Date Member Code Depository NSDL - IN DP-NSDL-24-97, date: CDSL - IN-CDSL , date : AMFI ARN 0098, Date: Port Follio Manager INP , Date : Reg. Office/Correspondence Address: 5th Floor, Finance Tower, Kaloor, Kochi Phone: /2/3 Fax: Website: Compliance officer name, phone & id: Mr. Vipin G S, , vipings@geojit.com CEO name, phone no & id: Mr. C J George, , md@geojit.com For any grievance/dispute please contact Geojit BNP Paribas Financial Services Ltd at the above address or id grievances@geojit.com and Phone: In case not satisfied with the response, please contact the concerned exchange(s) at the contact details given below: Exchange Department ID Phone No. National Stock Exchange of India Ltd Investor Grievance Cell ignse@nse.co.in Bombay Stock Exchange Ltd Investor Services is@bseindia.com MCX Stock Exchange Limited Investor Complaints investorcomplaints@mcx-sx.com

2 PERSONAL INFORMATION Share your Personal information with us and WIN exciting GIFTS!! NON - MANDATORY No. of Dependants Total Earning Total Monthly Income Rs. Members in Family (Family) Insurance Cover Yourself Yes No Your Family Yes No Medical Insurance Cover Yourself Yes No Your Family Yes No Credit Cards How Many Credit Cards do you have Debit Cards How Many Debit Cards do you have House Own Home Loan Yes No Rent Parents No. of Property Property Value Do you own Car Motor Bike Vehicle Loan No. of Cars / Vehicles a Vehicle Investments Shares Mutal Fund Bonds Debentures Kisan Vikas Patra NSC Fixed Deposit Gold Real Estate Commodity Cash Others Loan Requirement Yes No If Yes Amount Rs. Would you like to Do you have Financial participate in Investor Yes No Responsibility Yes No Education Programs of your family Would you like to recommend Geojit BNP paribas to your friends/family? If yes, please provide the following information: 1. Name of person : Contact Number : 2. Name of person: Contact Number : 3. Name of person: Contact Number : 4. Name of person: Contact Number : 2

3 Trading: Annexure - 2 CDSL: Annexure NSDL: Annexure - J Local / Permanent Address (sub mit valid proof of address) KNOW YOUR CLIENT (KYC) APPLICATION FORM 3 For Individuals/Sole Proprietorship/ Partnership/HUF Type of Trading Account Ordinary Resident NRI-Repatriable NRI-Non-Repatriable Sole Proprietor Partnership HUF Others (please specify)... Please fill the details in CAPITAL LETTERS only. Strike off whichever is not applicable. Sole/First Holder s Details (Fill correctly, Name once captured in Demat account cannot be changed.) Whether trading account is required in this holder s name? Yes No A. IDENTITY DETAILS Name of the Applicant B. ADDRESS DETAILS Correspondence/Foriegn Address (sub mit valid proof of address) Please read the instructions/checklist given in Page No. 8 and 9 before filling the application. I/We request you to open the following account(s) in my/our name as per the following details. (Please tick only one of the following options) Trading Account and NSDL Demat Account Trading Account and CDSL Demat Account Trading Account only NSDL Demat Account only CDSL Demat Account only DP IDs: NSDL: IN IN CDSL: Client ID (To be filled by Participant) Type of Demat Account Ordinary Resident NRI-Repatriable NRI-Non-Repatriable Margin Promoter HUF Others (please specify)... Father sname Spouse Name Gender Male Female Marital status Single Married Date of birth Status Resident Individual Non Resident Foreign National Nationality PAN Provide a self-attested copy of PAN card and original for verification City/town/village Pin Code State Country Contact Details Tel. (Off.) Tel. (Res.) Fax D D M M Y Y Y Y Mobile No.: id SMS Facility (This facility is made mandatory to register Power of Attorney in demat account* Yes No Specify the proof of address submitted for correspondence/foreign address City/town/village Pin Code State Country Specify the proof of address submitted for local/permanent address * NRIs and Foreign Nationals are exempted from this mandatory requirement C. OTHER DETAILS UID/ Aadhaar, if any Specify the proof of Identity submitted Gross Annual Income Income Range per annum Below Rs 1 Lac 1-5 Lac 5-10 Lac Lac >25 Lacs Details (please specify) Or Net-worth as on (date) D D M M Y Y Y Y (*Net worth should not be older than 1 year) Occupation (please tick any Private Sector Public Sector Government Service Business Professional one and give brief details) Agriculturist Retired Housewife Student Others Name of Employer/ Establishment

4 Designation Address Period of Service City: State: Country: PIN CODE: Contact Details Phone: Fax: Please tick, if applicable Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP) Any other information Other Holder Deatils - Second Holder (Fill correctly, Name once captured in Demat account cannot be changed.) Whether trading account is required in this holder s name? Yes No D. IDENTITY DETAILS Name of the Applicant Father sname Spouse Name Gender Male Female Marital status Single Married Date of birth Status Resident Individual Non Resident Foreign National Nationality PAN Provide a self-attested copy of PAN card and original for verification E. ADDRESS DETAILS Correspondence/Foriegn Address (sub mit valid proof of address) City/town/village Pin Code State Country Contact Details Tel. (Off.) Tel. (Res.) Fax Mobile No.: id SMS Facility (This facility is made mandatory to register Power of Attorney in demat account* Yes No Specify the proof of address submitted for correspondence/foreign address Local / Permanent Address (sub mit valid proof of address) City/town/village Pin Code State Country Specify the proof of address submitted for local/permanent address * NRIs and Foreign Nationals are exempted from this mandatory requirement F. OTHER DETAILS UID/ Aadhaar, if any Specify the proof of Identity submitted 4 D D M M Y Y Y Y Gross Annual Income Income Range per annum Below Rs 1 Lac 1-5 Lac 5-10 Lac Lac >25 Lacs Details (please specify) Or Net-worth as on (date) D D M M Y Y Y Y (*Net worth should not be older than 1 year) Occupation (please tick any Private Sector Public Sector Government Service Business Professional one and give brief details) Agriculturist Retired Housewife Student Others Name of Employer/ Establishment

5 Designation Address Period of Service City: State: Country: PIN CODE: Contact Details Phone: Fax: Please tick, if applicable Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP) Any other information Other Holder Deatils - Third Holder (Fill correctly, Name once captured in Demat account cannot be changed.) Whether trading account is required in this holder s name? Yes No G. IDENTITY DETAILS Name of the Applicant Father sname Spouse Name Gender Male Female Marital status Single Married Date of birth Status Resident Individual Non Resident Foreign National Nationality PAN Provide a self-attested copy of PAN card and original for verification H. ADDRESS DETAILS Correspondence/Foriegn Address (sub mit valid proof of address) City/town/village Pin Code State Country Contact Details Tel. (Off.) Tel. (Res.) Fax Local / Permanent Address (sub mit valid proof of address) 5 D D M M Y Y Y Y Mobile No.: id SMS Facility (This facility is made mandatory to register Power of Attorney in demat account* Yes No Specify the proof of address submitted for correspondence/foreign address City/town/village Pin Code State Country Specify the proof of address submitted for local/permanent address * NRIs and Foreign Nationals are exempted from this mandatory requirement I. OTHER DETAILS UID/ Aadhaar, if any Specify the proof of Identity submitted Gross Annual Income Income Range per annum Below Rs 1 Lac 1-5 Lac 5-10 Lac Lac >25 Lacs or Details (please specify) Or Net-worth as on (date) D D M M Y Y Y Y (*Net worth should not be older than 1 year) Occupation (please tick any Private Sector Public Sector Government Service Business Professional one and give brief details) Agriculturist Retired Housewife Student Others Name of Employer/ Establishment

6 Designation Address Period of Service J. GUARDIAN DETAILS (In case the Sole Holder is a minor). - Applicable for Demat Account only Name (Mr./Ms.) Relationship (if any) City: State: Country: PIN CODE: Contact Details Phone: Fax: Please tick, if applicable Politically Exposed Person (PEP) Related to a Politically Exposed Person (PEP) Any other information Date of Birth* (of Minor) PAN Provide a copy of the PAN card and original for verification D D M M Y Y Y Y Address (Submit valid Proof of Address) *Provide attested copy of Birth Certificate. Building/Tower/Appartment/Palace/Chamber/Mansion Street/Road/Marg/Lane/Avenue/Rasta Area Name CityName PIN CODE: K. BANK DETAILS FOR DEMAT ACCOUNT Bank A/c No. Bank Sub-type Savings Account Current Account Others... Bank Name (Full name) Bank Branch Address (Write as per the manner discribed) PIN CODE: 9-Digit Code Number of the Bank and branch appearing on the MICR cheque issued by the Bank (Submit valid proof) IFSC Number In case of NRIs, RBI Reference No.* RBI Approval Date D D M M Y Y Y Y *Submit PIS permission copy obtained from bank. L. STANDING INSTRUCTIONS FOR DEMAT ACCOUNT I/We authorise you to receive credits automatically into my/our account Yes No Account to be operated through Power of Attorney (PoA) (If yes, ensure SMS alert facility is opted.) Yes No I/We authorise you to send all communications/statements through the only* Yes No Address for communication/corporate Benefits (Default option is Local Address) Local/Permanent Address Correspondence Address/Foreign Address *All communication shall be sent at the Id/correspondence address of the Sole/First holder only. Please ensure the correctness of address. Also see the agreement in page no. 32. Photograph of Sole/Trading Account Holder/ Photograph of Second Holder Photograph of Third Holder First Holder or Minor or Guardian in case sole holder is Minor Paste here a recent passport size photograph of the first holder/trading account holder and he/she must sign halfway across the photograph and application form sign across Paste here a recent passport size photograph of the second holder/guardian and he/she must sign halfway across the photograph and application form sign across Paste here a recent passport size photograph of the third holder and he/she must sign halfway across the photograph and application form sign across 6

7 M. DECLARATION The rules and regulations of the Depository and Depository Participants/Capital Market pertaining to an account which are in force now have been read by me/us and I/we have understood the same and I/we agree to abide by and to be bound by the rules as are in force from time to time for such accounts. I/We also declare that the particulars given by me/us are true to the best of my/our knowledge as on the date of making such application and I/we undertake to inform you of any changes therein, immediately. I/We further agree that any false/ misleading information given by me or suppression of any material fact will render my account liable for termination and further action. I/ we understand and acknowledge the fact that I/we am/are at liberty to withdraw all or any of the information provided by me/us and the same shall be made by me/us in writing. I/we confirm and accept that such withdrawal shall entitle you to withdraw all or any of the services provided to me/us under the account opening documentation. NRI Declaration I/We, declare that I/we have complied and shall continue to abide by the rules and regulations under Foreign Exchange Management Act (FEMA)-1999 while operating the demat account with you. I/We also hereby declare that all the securities held by me/us and being purchased by me/us are subject to the necessary permission/s granted/being obtained from the RBI as per the rules and guidelines framed under the FEMA. Whenever there is a change in residential address I/we shall inform the DP. Date: D D M M Y Y Y Y Sole/First Holder in Demat Account/ Trading Account Holder in case of Trading Account only or Guardian (in case of minor) (Mr./Ms.) Second Holder in Demat Account (Mr./Ms.) Third Holder in Demat Account (Mr./Ms.) Names(s) of holder(s) Signature(s) (Full signature required) (Full signature required) (Full signature required) *Thumb impressions and signatures other than English or Hindi or any of the other language not contained in the 8th Schedule of the Constitution of India must be attested by a Magistrate or a Notary Public or a Special Executive Magistrate. FOR OFFICE USE ONLY (Originals verified) True copies of documents received (Self-Attested) Self Certified Document copies received Signature of the Branch Manager Date: Seal/Stamp of Geojit BNP Paribas 7

8 INSTRUCTIONS/CHECK LIST FOR FILLING KYC FORM GENERAL GUIDELINES 1. Application should be filled in ENGLISH and preferably in CAPITAL LETTERS. 2. Please ensure that the form is properly filled in legible handwriting so as to avoid errors in your application processing. Please do not overwrite. Corrections should be made by canceling and re-writing, and such corrections should be authenticated by all applicants with their full signatures. 3. Strike-off unused columns and fields. Tick the appropriate boxes wherever applicable. 4. Applications incomplete in any respect and/or not accompanied by required documents are liable to be rejected. 5. Please mention the complete address as it appears in the Proof of Address submitted. 6. Originals of documents should be produced for verification along with self-attested copies of documents. 7. In case of demat account, all communications shall be sent at the address of the Sole/First Holder only. In case of , it shall be forwarded to the First/Sole holder only. 8. SMS facility is mandatory to register Power of Attorney in Demat Account. NRIs, and Foreign Nationals are exempted from this mandatory requirement. 9. Please affix full signature wherever mark is found and is indicated full signature required. 10. The applicant(s) should submit a valid Proof of Identity (POI) and Proof of Address (POA) - local/correspondence/ foreign as the case may be. Refer B & C for the list of documents admissible for this purpose. 11. In case of joint demat accounts, Proof of Identity and Proof of Address must be submitted in respect of all account holders. 12. In case of demat accounts, the Depository Participant may ask for additional documents for establishing the identity of the applicant(s) to ensure safety and integrity of the depository system. A. IMPORTANT POINTS: 1. Self attested copy of PAN card is mandatory for all clients, including Promoters/Partners/Karta/Trustees and whole time directors and persons authorized to deal in securities on behalf of company/firm/others. 2. Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the below mentioned list. 3. If any proof of identity or address is in a foreign language, then translation into English is required. 4. Name & address of the applicant mentioned on the KYC form, should match with the documentary proof submitted. 5. If correspondence & permanent address are different, then proofs for both have to be submitted. 6. Sole proprietor must make the application in his individual name & capacity. 7. For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA guidelines), copy of passport/ PIO Card/OCI Card and overseas address proof is mandatory. 8. In case of Merchant Navy NRI s, Mariner s declaration or certified copy of CDC (Continuous Discharge Certificate) is to be submitted. 9. For opening an account with Depository participant or Mutual Fund, for a minor, photocopy of the School Leaving Certificate/Mark sheet issued by Higher Secondary Board/Passport of Minor/Birth Certificate must be provided. 10. Politically Exposed Persons (PEP) are defined as individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior Government/judicial/ military officers, senior executives of state owned corporations, important political party officials, etc. 11. Partnership firm: Copy of the balance sheets for the last 2 financial years (to be submitted every year). Certificate of registration (for registered partnership firms only). Copy of partnership deed. Authorised signatories list with specimen signatures. Photograph, POI, POA, PAN of Partners. 8

9 12. HUF: PAN of HUF. Deed of declaration of HUF/ List of coparceners. Bank pass-book/bank statement in the name of HUF. Photograph, POI, POA, PAN of Karta. B. PROOF OF IDENTITY (POI): - List of documents admissible as Proof of Identity: 1. Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license. 2. PAN card with photograph. 3. Identity card/ document with applicant s Photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/debit cards issued by Banks. C. PROOF OF ADDRESS (POA): - List of documents admissible as Proof of Address: (*Documents having an expiry date should be valid on the date of submission.) 1. Passport/ Voters Identity Card/ Ration Card/ Registered Lease or Sale Agreement of Residence/ Driving License/ Flat Maintenance bill/ Insurance Copy. 2. Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more than 3 months old. 3. Bank Account Statement/Passbook Not more than 3 months old. 4. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts. 5. Proof of address issued by any of the following: Bank Managers of Scheduled Commercial Banks/Scheduled Co-Operative Bank/Multinational Foreign Banks/Gazetted Officer/Notary public/elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority. 6. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members. 7. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken. 8. The proof of address in the name of the spouse may be accepted. D. EXEMPTIONS/CLARIFICATIONS TO PAN (*Sufficient documentary evidence in support of such claims to be collected.) 1. In case of transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc. 2. Investors residing in the state of Sikkim. 3. UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India. 4. SIP of Mutual Funds upto Rs 50, 000/- p.a. E. LIST OF PEOPLE AUTHORIZED TO ATTEST THE DOCUMENTS: 1. Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or Multinational Foreign Banks (Name, Designation & Seal should be affixed on the copy). 2. In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy /Consulate General in the country where the client resides are permitted to attest the documents. 9

10 Annexure - 3 TRADING AND DEMAT ACCOUNT RELATED DETAILS A. BANK ACCOUNT DETAILS FOR TRADING (Please see intsruction No. 2 in page 13) Bank Name Branch address For Individuals/Sole Proprietorship/Partnership/HUF Bank account no. Account Type: Saving/Current/ Others/In case of NRI/NRE/NRO MICR Number IFSC Number B. DEPOSITORY ACCOUNT DETAILS (Please see intsruction No. 3 in page 13) Depository Depository Name Beneficiary DP ID Beneficiary ID Participant Name (NSDL/CDSL) Name (BO ID) C. TRADING PREFERENCES *Please sign in the relevant boxes where you wish to trade. The segment not chosen should be struck off by the client. Exchanges Segments Cash (Full signature required) Currency Derivative (Full signature required) NSE F&O (Full signature required) Debt Market (Full signature required) Mutual Fund (MFSS) (Full signature required) BSE Cash (Full signature required) Currency Derivative (Full signature required) F&O (Full signature required) Debt Market (Full signature required) MCX-SX Currency Derivative (Full signature required) # If, in future, the client wants to trade on any new segment/new exchange, separate authorization/letter should be taken from the client by the stock broker. 10

11 D. DOCUMENTARY EVIDENCE OF FINANCIAL DETAILS FOR DERIVATIVE CLIENTS (For Derivatives Trading) Copy of Tax Return Salary Certificate Net Worth Certificate Bank Statement Others, Please Specify for the last 6 months... E. PAST ACTIONS Details of any action/proceedings initiated/pending/ taken by SEBI/ Stock exchange/any other authority against the applicant/ constituent or its Partners/promoters/whole time directors/authorized persons in charge of dealing in securities during the last 3 years F. DEALINGS THROUGH SUB-BROKERS AND OTHER STOCK BROKERS If client is dealing through the sub-broker, provide the following Sub-broker s Name: NSE SEBI Registration number BSE SEBI Registration number Registered office address Phone Fax Website Whether dealing with any other stock broker/sub-broker (if case dealing with multiple stock brokers/sub-brokers, Name of stock broker Client Code Details of disputes/dues pending from/to such stock broker/sub- broker Name of Sub-Broker, if any Exchange G. ADDITIONAL DETAILS Whether you wish to receive Electronic Contract Note or Physical Contract Note (ECN) please specify Specify your id, if applicable Whether you wish to avail of the facility of internet trading/ wireless technology (please specify) Number of years of Investment/Trading Experience In case of sole proprietor/partnership, please indicate the name and address of the firm SMS and alerts to investors by stock exhcanges. (Please tick whichever is applicable. If not ticked, assumed Not Required ) If an existing mobile number/ address is used, please specify the relationship and PAN of the address/mobile number owner Any other information H. INTRODUCER DETAILS (optional) Name of the Introducer (Surname) (Name) (Middle Name) Status of the Introducer Sub-broker Remiser Authorized Person Addresof the Introducer Phone Number PAN Existing Client Others, please specify Signature of the Introducer I. RELATIVE OF GEOJIT BNP PARIBAS EMPLOYEE (For Trading) Electronic Contact Note Physical Contact Note Yes No SMS Both Not Required Spouse Dependent Parent Dependent Child Are you a relative of Geojit BNP Paribas employee? Yes / No If yes, please indicate your relationship with the employee (Parent/Parent-in-law/Sibling/Spouse/Child) Employee code Employee name 11

12 J. NOMINATION FOR DEMAT/TRADING ACCOUNT/ONLINE MUTUAL FUND INVESTMENTS (Please read the instructions given below before filling) I/We wish to make a nomination and do hereby nominate the following person in whom all rights and/or amount payable in respect of securities held in the Depository by me/us in the said beneficiary owner account shall vest in the event of my/our death. I/We do not wish to make a nomination Name of the Nominee Date of Birth (In case of Minor) D D M M Y Y Y Y Relationship with the Applicant (if any) Address and Phone Number of the Nominee Phone: PIN CODE: Name, Address and Phone Number of Guardian (in case Nominee is a minor) Phone: PIN CODE: PAN of Nominee Signature of Nominee: Signature of Guardian: (in case nominee is a minor) Paste here a recent passport size Photograph of Nominee Singnature halfway across the photograph and application form sign across Paste here a recent passport size Photograph of Guardian (in case of minor) Singnature halfway across the photograph and application form sign across K. WITNESS (Two witness details are mandatory) Name and Address of witness 1. Signature with date 2. (To be signed by the applicant(s) only in case of Nomination.) (Full signature required) (Full signature required) (Full signature required) (Sole/First Holder/Trading A/c Holder) (Second Holder) Third Holder Intructions related to nomination, are as below: 1. The nomination can be made only by individuals holding beneficiary owner accounts on their own behalf singly or jointly. Non- individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate. If the account is held jointly all joint holders will sign the nomination form. 2. A minor can be nominated. In that event, the name and address of the Guardian of the minor nominee shall be provided by the beneficial owner. 3. The Nominee shall not be a trust, society, body corporate, partnership firm, karta of Hindu Undivided Family or a power of Attorney holder. A nonresident Indian can be a Nominee, subject to the exchange controls in force, from time to time. 4. Nomination in respect of the beneficiary owner account stands rescinded upon closure of the beneficiary owner account. Similarly, the nomination in respect of the securities shall stand terminated upon transfer of the securities. 5. Transfer of securities in favour of a Nominee shall be valid discharge by the depository against the legal heir. 6. The cancellation of nomination can be made by individuals only holding beneficiary owner accounts on their own behalf singly or jointly by the same persons who made the original nomination. Non- individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot cancel the nomination. If the beneficiary owner account is held jointly, all joint holders will sign the cancellation form. 7. On cancellation of the nomination, the nomination shall stand rescinded and the depository shall not be under any obligation to transfer the securities in favour of the Nominee. 8. Account holder cannot be a nominee or guardian in case of minor nomination. 9. In case the nominee is a minor, a fresh nomination in Anexxure-JA to be submitted in every 5 years. 12

13 L. DECLARATION 1. I/We hereby declare that the details furnished above are true and correct to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable for it. 2. I/We confirm having read/been explained and understood the contents of the document on policy and procedures of the stock broker and the tariff sheet. 3. I/We further confirm having read and understood the contents of the Rights and Obligations document(s) and Risk Disclosure Document. I/We do hereby agree to be bound by such provisions as outlined in these documents. I/We have also been informed that the standard set of documents has been displayed for Information on stock broker s designated website, if any. Place : (Full signature required) Date : Signature of Trading Account Holder UCC Code allotted to the Client DP ID : IN IN Not Applicable Documents verified with Originals Client Interviewed by In-Person Verification done by Name of the Employee Employee Code Designation of the employee Date Signature Place I/We undertake that we have made the client aware of Policy and Procedures, tariff sheet and all the non-mandatory documents. I/We have also made the client aware of Rights and Obligations document (s), RDD and Guidance Note. I/We have given/sent him a copy of all the KYC documents. I/We undertake that any change in the Policy and Procedures, tariff sheet and all the non-mandatory documents would be duly intimated to the clients. I/We also undertake that any change in the Rights and Obligations and RDD would be made available on my/our website, if any, for the information of the clients. FOR OFFICE USE ONLY Signature of the Branch Manager Date : Seal/Stamp of Geojit BNP Paribas INSTRUCTIONS/ CHECK LIST 1. Additional documents in case of trading in derivatives segments - illustrative list: Copy of ITR Acknowledgement Copy of Annual Accounts In case of salary income - Salary Slip, Copy of Form 16 Net worth certificate Copy of demat account holding statement. Bank account statement for last 6 months Any other relevant documents substantiating ownership of assets. Self declaration with relevant supporting documents *In respect of other clients, documents as per risk management policy of the stock broker need to be provided by the client from time to time. 2. Copy of cancelled cheque leaf/ pass book/bank statement specifying name of the constituent, MICR Code or/and IFSC Code of the bank should be submitted. 3. Demat master or recent holding statement issued by DP bearing name of the client. 4. For individuals: a. Stock broker has an option of doing in-person verification through web camera at the branch office of the stock broker/sub-broker s office. b. In case of non-resident clients, employees at the stock broker s local office, overseas can do in-person verification. Further, considering the infeasibility of carrying out In-person verification of the non-resident clients by the stock broker s staff, attestation of KYC documents by Notary Public, Court, Magistrate, Judge, Local Banker, Indian Embassy / Consulate General in the country where the client resides may be permitted. VERIFICATION AT HEAD OFFICE I confirm that this Client Registration Kit is complete in all respects. UNIQUE CLIENT CODE: Original document Verified by: Authorised by: Name... Name... Signature: Signature: 13

14 RIGHTS AND OBLIGATIONS OF STOCK BROKERS, SUB-BROKERS AND CLIENTS as prescribed by SEBI and Stock Exchanges 1. The client shall invest/trade in those securities/contracts/other instruments admitted to dealings on the Exchanges as defined in the Rules, Byelaws and Regulations of Exchanges/ Securities and Exchange Board of India (SEBI) and circulars/notices issued there under from time to time. 2. The stock broker, sub-broker and the client shall be bound by all the Rules, Byelaws and Regulations of the Exchange and circulars/notices issued there under and Rules and Regulations of SEBI and relevant notifications of Government authorities as may be in force from time to time. 3. The client shall satisfy itself of the capacity of the stock broker to deal in securities and/or deal in derivatives contracts and wishes to execute its orders through the stock broker and the client shall from time to time continue to satisfy itself of such capability of the stock broker before executing orders through the stock broker. 4. The stock broker shall continuously satisfy itself about the genuineness and financial soundness of the client and investment objectives relevant to the services to be provided. 5. The stock broker shall take steps to make the client aware of the precise nature of the Stock broker s liability for business to be conducted, including any limitations, the liability and the capacity in which the stock broker acts. 6. The sub-broker shall provide necessary assistance and co-operate with the stock broker in all its dealings with the client(s). CLIENT INFORMATION 7. The client shall furnish all such details in full as are required by the stock broker in Account Opening Form with supporting details, made mandatory by stock exchanges/sebi from time to time. 8. The client shall familiarize himself with all the mandatory provisions in the Account Opening documents. Any additional clauses or documents specified by the stock broker shall be non-mandatory, as per terms & conditions accepted by the client. 9. The client shall immediately notify the stock broker in writing if there is any change in the information in the account opening form as provided at the time of account opening and thereafter; including the information on winding up petition/insolvency petition or any litigation which may have material bearing on his capacity. The client shall provide/update the financial information to the stock broker on a periodic basis. 10. The stock broker and sub-broker shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confidentially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the stock broker may so disclose information about his client to any person or authority with the express permission of the client. MARGINS 11. The client shall pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the stock broker or the Exchange or as may be directed by SEBI from time to time as applicable to the segment(s) in which the client trades. The stock broker is permitted in its sole and absolute discretion to collect additional margins (even though not required by the Exchange, Clearing House/Clearing Corporation or SEBI) and the client shall be obliged to pay such margins within the stipulated time. 12. The client understands that payment of margins by the client does not necessarily imply complete satisfaction of all dues. In spite of consistently having paid margins, the client may, on the settlement of its trade, be obliged to pay (or entitled to receive) such further sums as the contract may dictate/require. TRANSACTIONS AND SETTLEMENTS 13. The client shall give any order for buy or sell of a security/derivatives contract in writing or in such form or manner, as may be mutually agreed between the client and the stock broker. The stock broker shall ensure to place orders and execute the trades of the client, only in the Unique Client Code assigned to that client. 14. The stock broker shall inform the client and keep him apprised about trading/settlement cycles, delivery/payment schedules, any changes therein from time to time, and it shall be the responsibility in turn of the client to comply with such schedules/procedures of the relevant stock exchange where the trade is executed. 15. The stock broker shall ensure that the money/securities deposited by the client shall be kept in a separate account, distinct from his/its own account or account of any other client and shall not be used by the stock broker for himself/ 14

15 itself or for any other client or for any purpose other than the purposes mentioned in Rules, Regulations, circulars, notices, guidelines of SEBI and/or Rules, Regulations, Bye-laws, circulars and notices of Exchange. 16. Where the Exchange(s) cancels trade(s) suo moto all such trades including the trade/s done on behalf of the client shall ipso facto stand cancelled, stock broker shall be entitled to cancel the respective contract(s) with client(s). 17. The transactions executed on the Exchange are subject to Rules, Byelaws and Regulations and circulars/notices issued thereunder of the Exchanges where the trade is executed and all parties to such trade shall have submitted to the jurisdiction of such court as may be specified by the Byelaws and Regulations of the Exchanges where the trade is executed for the purpose of giving effect to the provisions of the Rules, Byelaws and Regulations of the Exchanges and the circulars/notices issued thereunder. BROKERAGE 18. The Client shall pay to the stock broker brokerage and statutory levies as are prevailing from time to time and as they apply to the Client s account, transactions and to the services that stock broker renders to the Client. The stock broker shall not charge brokerage more than the maximum brokerage permissible as per the rules, regulations and bye-laws of the relevant stock exchanges and/or rules and regulations of SEBI. LIQUIDATION AND CLOSE OUT OF POSITION 19. Without prejudice to the stock broker s other rights (including the right to refer a matter to arbitration), the client understands that the stock broker shall be entitled to liquidate/close out all or any of the client s positions for nonpayment of margins or other amounts, outstanding debts, etc. and adjust the proceeds of such liquidation/close out, if any, against the client s liabilities/obligations. Any and all losses and financial charges on account of such liquidation/ closing-out shall be charged to and borne by the client. 20. In the event of death or insolvency of the client or his/its otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, stock broker may close out the transaction of the client and claim losses, if any, against the estate of the client. The client or his nominees, successors, heirs and assignee shall be entitled to any surplus which may result there from. The client shall note that transfer of funds/securities in favor of a Nominee shall be valid discharge by the stock broker against the legal heir. 21. The stock broker shall bring to the notice of the relevant Exchange the information about default in payment/delivery and related aspects by a client. In case where defaulting client is a corporate entity/partnership/proprietary firm or any other artificial legal entity, then the name(s) of Director(s)/Promoter(s)/Partner(s)/Proprietor as the case may be, shall also be communicated by the stock broker to the relevant Exchange(s). DISPUTE RESOLUTION 22. The stock broker shall provide the client with the relevant contact details of the concerned Exchanges and SEBI. 23. The stock broker shall co-operate in redressing grievances of the client in respect of all transactions routed through it and in removing objections for bad delivery of shares, rectification of bad delivery, etc. 24. The client and the stock broker shall refer any claims and/or disputes with respect to deposits, margin money, etc., to arbitration as per the Rules, Byelaws and Regulations of the Exchanges where the trade is executed and circulars/ notices issued thereunder as may be in force from time to time. 25. The stock broker shall ensure faster settlement of any arbitration proceedings arising out of the transactions entered into between him vis-à-vis the client and he shall be liable to implement the arbitration awards made in such proceedings. 26. The client/stock-broker understands that the instructions issued by an authorized representative for dispute resolution, if any, of the client/stock-broker shall be binding on the client/stock-broker in accordance with the letter authorizing the said representative to deal on behalf of the said client/stock-broker. TERMINATION OF RELATIONSHIP 27. This relationship between the stock broker and the client shall be terminated; if the stock broker for any reason ceases to be a member of the stock exchange including cessation of membership by reason of the stock broker s default, death, resignation or expulsion or if the certificate is cancelled by the Board. 28. The stock broker, sub-broker and the client shall be entitled to terminate the relationship between them without giving any reasons to the other party, after giving notice in writing of not less than one month to the other parties. Notwithstanding any such termination, all rights, liabilities and obligations of the parties arising out of or in respect 15

16 of transactions entered into prior to the termination of this relationship shall continue to subsist and vest in/be binding on the respective parties or his/its respective heirs, executors, administrators, legal representatives or successors, as the case may be. 29. In the event of demise/insolvency of the sub-broker or the cancellation of his/its registration with the Board or/ withdrawal of recognition of the sub-broker by the stock exchange and/or termination of the agreement with the sub broker by the stock broker, for any reason whatsoever, the client shall be informed of such termination and the client shall be deemed to be the direct client of the stock broker and all clauses in the Rights and Obligations document(s) governing the stock broker, sub-broker and client shall continue to be in force as it is, unless the client intimates to the stock broker his/its intention to terminate their relationship by giving a notice in writing of not less than one month. ADDITIONAL RIGHTS AND OBLIGATIONS 30. The stock broker shall ensure due protection to the client regarding client s rights to dividends, rights or bonus shares, etc. in respect of transactions routed through it and it shall not do anything which is likely to harm the interest of the client with whom and for whom they may have had transactions in securities. 31. The stock broker and client shall reconcile and settle their accounts from time to time as per the Rules, Regulations, Bye Laws, Circulars, Notices and Guidelines issued by SEBI and the relevant Exchanges where the trade is executed. 32. The stock broker shall issue a contract note to his constituents for trades executed in such format as may be prescribed by the Exchange from time to time containing records of all transactions including details of order number, trade number, trade time, trade price, trade quantity, details of the derivatives contract, client code, brokerage, all charges levied etc. and with all other relevant details as required therein to be filled in and issued in such manner and within such time as prescribed by the Exchange. The stock broker shall send contract notes to the investors within one working day of the execution of the trades in hard copy and/or in electronic form using digital signature. 33. The stock broker shall make pay out of funds or delivery of securities, as the case may be, to the Client within one working day of receipt of the payout from the relevant Exchange where the trade is executed unless otherwise specified by the client and subject to such terms and conditions as may be prescribed by the relevant Exchange from time to time where the trade is executed. 34. The stock broker shall send a complete Statement of Accounts for both funds and securities in respect of each of its clients in such periodicity and format within such time, as may be prescribed by the relevant Exchange, from time to time, where the trade is executed. The Statement shall also state that the client shall report errors, if any, in the Statement within such time as may be prescribed by the relevant Exchange from time to time where the trade was executed, from the receipt thereof to the Stock broker. 35. The stock broker shall send daily margin statements to the clients. Daily Margin statement should include, inter-alia, details of collateral deposited, collateral utilized and collateral status (available balance/due from client) with break up in terms of cash, Fixed Deposit Receipts (FDRs), Bank Guarantee and securities. 36. The Client shall ensure that it has the required legal capacity to, and is authorized to, enter into the relationship with stock broker and is capable of performing his obligations and undertakings hereunder. All actions required to be taken to ensure compliance of all the transactions, which the Client may enter into shall be completed by the Client prior to such transaction being entered into. ELECTRONIC CONTRACT NOTES (ECN) 37. In case, client opts to receive the contract note in electronic form, he shall provide an appropriate id to the stock broker. The client shall communicate to the stock broker any change in the -id through a physical letter. If the client has opted for internet trading, the request for change of id may be made through the secured access by way of client specific user id and password. 38. The stock broker shall ensure that all ECNs sent through the shall be digitally signed, encrypted, non-tamper able and in compliance with the provisions of the IT Act, In case, ECN is sent through as an attachment, the attached file shall also be secured with the digital signature, encrypted and non-tamperable. 39. The client shall note that non-receipt of bounced mail notification by the stock broker shall amount to delivery of the contract note at the ID of the client. 40. The stock broker shall retain ECN and acknowledgement of the in a soft and non-tamperable form in the manner prescribed by the exchange in compliance with the provisions of the IT Act, 2000 and as per the extant rules/ regulations/circulars/guidelines issued by SEBI/Stock Exchanges from time to time. The proof of delivery i.e., log 16

17 report generated by the system at the time of sending the contract notes shall be maintained by the stock broker for the specified period under the extant regulations of SEBI/stock exchanges. The log report shall provide the details of the contract notes that are not delivered to the client/ s rejected or bounced back. The stock broker shall take all possible steps to ensure receipt of notification of bounced mails by him at all times within the stipulated time period under the extant regulations of SEBI/stock exchanges. 41. The stock broker shall continue to send contract notes in the physical mode to such clients who do not opt to receive the contract notes in the electronic form. Wherever the ECNs have not been delivered to the client or has been rejected (bouncing of mails) by the ID of the client, the stock broker shall send a physical contract note to the client within the stipulated time under the extant regulations of SEBI/stock exchanges and maintain the proof of delivery of such physical contract notes. 42. In addition to the communication of the ECNs to the client, the stock broker shall simultaneously publish the ECN on his designated web-site, if any, in a secured way and enable relevant access to the clients and for this purpose, shall allot a unique user name and password to the client, with an option to the client to save the contract note electronically and/or take a print out of the same. LAW AND JURISDICTION 43. In addition to the specific rights set out in this document, the stock broker, sub-broker and the client shall be entitled to exercise any other rights which the stock broker or the client may have under the Rules, Bye-laws and Regulations of the Exchanges in which the client chooses to trade and circulars/notices issued thereunder or Rules and Regulations of SEBI. 44. The provisions of this document shall always be subject to Government notifications, any rules, regulations, guidelines and circulars/notices issued by SEBI and Rules, Regulations and Bye laws of the relevant stock exchanges, where the trade is executed, that may be in force from time to time. 45. The stock broker and the client shall abide by any award passed by the Arbitrator(s) under the Arbitration and Conciliation Act, However, there is also a provision of appeal within the stock exchanges, if either party is not satisfied with the arbitration award. 46. Words and expressions which are used in this document but which are not defined herein shall, unless the context otherwise requires, have the same meaning as assigned thereto in the Rules, Byelaws and Regulations and circulars/ notices issued thereunder of the Exchanges/SEBI. 47. All additional voluntary clauses/document added by the stock broker should not be in contravention with rules/ regulations/notices/circulars of Exchanges/SEBI. Any changes in such voluntary clauses/document(s) need to be preceded by a notice of 15 days. Any changes in the rights and obligations which are specified by Exchanges/SEBI shall also be brought to the notice of the clients. 48. If the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of SEBI or Bye-laws, Rules and Regulations of the relevant stock Exchanges where the trade is executed, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document. 17

18 INTERNET & WIRELESS TECHNOLOGY BASED TRADING FACILITY PROVIDED BY STOCK BROKERS TO CLIENT (All the clauses mentioned in the Rights and Obligations document(s) shall be applicable. Additionally, the clauses mentioned herein shall also be applicable.) 1. Stock broker is eligible for providing Internet based trading (IBT) and securities trading through the use of wireless technology that shall include the use of devices such as mobile phone, laptop with data card, etc. which use Internet Protocol (IP). The stock broker shall comply with all requirements applicable to internet based trading/securities trading using wireless technology as may be specified by SEBI & the Exchanges from time to time. 2. The client is desirous of investing/trading in securities and for this purpose, the client is desirous of using either the internet based trading facility or the facility for securities trading through use of wireless technology. The Stock broker shall provide the Stock broker s IBT Service to the Client, and the Client shall avail of the Stock broker s IBT Service, on and subject to SEBI/Exchanges Provisions and the terms and conditions specified on the Stock broker s IBT Web Site provided that they are in line with the norms prescribed by Exchanges/SEBI. 3. The stock broker shall bring to the notice of client the features, risks, responsibilities, obligations and liabilities associated with securities trading through wireless technology/internet/smart order routing or any other technology should be brought to the notice of the client by the stock broker. 4. The stock broker shall make the client aware that the Stock Broker s IBT system itself generates the initial password and its password policy as stipulated in line with norms prescribed by Exchanges/SEBI. 5. The Client shall be responsible for keeping the Username and Password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through the Stock broker s IBT System using the Client s Username and/or Password whether or not such person was authorized to do so. Also the client is aware that authentication technologies and strict security measures are required for the internet trading/ securities trading through wireless technology through order routed system and undertakes to ensure that the password of the client and/or his authorized representative are not revealed to any third party including employees and dealers of the stock broker 6. The Client shall immediately notify the Stock broker in writing if he forgets his password, discovers security flaw in Stock Broker s IBT System, discovers/suspects discrepancies/ unauthorized access through his username/password/ account with full details of such unauthorized use, the date, the manner and the transactions effected pursuant to such unauthorized use, etc. 7. The Client is fully aware of and understands the risks associated with availing of a service for routing orders over the internet/securities trading through wireless technology and Client shall be fully liable and responsible for any and all acts done in the Client s Username/password in any manner whatsoever. 8. The stock broker shall send the order/trade confirmation through to the client at his request. The client is aware that the order/ trade confirmation is also provided on the web portal. In case client is trading using wireless technology, the stock broker shall send the order/trade confirmation on the device of the client. 9. The client is aware that trading over the internet involves many uncertain factors and complex hardware, software, systems, communication lines, peripherals, etc. are susceptible to interruptions and dislocations. The Stock broker and the Exchange do not make any representation or warranty that the Stock broker s IBT Service will be available to the Client at all times without any interruption. 10. The Client shall not have any claim against the Exchange or the Stock broker on account of any suspension, interruption, non-availability or malfunctioning of the Stock broker s IBT System or Service or the Exchange s service or systems or non-execution of his orders due to any link/system failure at the Client/Stock brokers/exchange end for any reason beyond the control of the stock broker/exchanges. 18

19 RISK DISCLOSURE DOCUMENT FOR CAPITAL MARKET AND DERIVATIVES SEGMENTS This document contains important information on trading in Equities/Derivatives Segments of the stock exchanges. All prospective constituents should read this document before trading in Equities/Derivatives Segments of the Exchanges. Stock exchanges/sebi does neither singly or jointly and expressly nor impliedly guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure document nor have Stock exchanges /SEBI endorsed or passed any merits of participating in the trading segments. This brief statement does not disclose all the risks and other significant aspects of trading. In the light of the risks involved, you should undertake transactions only if you understand the nature of the relationship into which you are entering and the extent of your exposure to risk. You must know and appreciate that trading in Equity shares, derivatives contracts or other instruments traded on the Stock Exchange, which have varying element of risk, is generally not an appropriate avenue for someone of limited resources/limited investment and/or trading experience and low risk tolerance. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition. In case you trade on Stock exchanges and suffer adverse consequences or loss, you shall be solely responsible for the same and Stock exchanges/its Clearing Corporation and/or SEBI shall not be responsible, in any manner whatsoever, for the same and it will not be open for you to take a plea that no adequate disclosure regarding the risks involved was made or that you were not explained the full risk involved by the concerned stock broker. The constituent shall be solely responsible for the consequences and no contract can be rescinded on that account. You must acknowledge and accept that there can be no guarantee of profits or no exception from losses while executing orders for purchase and/or sale of a derivative contract being traded on Stock exchanges. It must be clearly understood by you that your dealings on Stock exchanges through a stock broker shall be subject to your fulfilling certain formalities set out by the stock broker, which may inter alia include your filling the know your client form, reading the rights and obligations, do s and don ts, etc., and are subject to the Rules, Byelaws and Regulations of relevant Stock exchanges, its Clearing Corporation, guidelines prescribed by SEBI and in force from time to time and Circulars as may be issued by Stock exchanges or its Clearing Corporation and in force from time to time. Stock exchanges does not provide or purport to provide any advice and shall not be liable to any person who enters into any business relationship with any stock broker of Stock exchanges and/or any third party based on any information contained in this document. Any information contained in this document must not be construed as business advice. No consideration to trade should be made without thoroughly understanding and reviewing the risks involved in such trading. If you are unsure, you must seek professional advice on the same. In considering whether to trade or authorize someone to trade for you, you should be aware of or must get acquainted with the following:- 1. BASIC RISKS: 1.1 Risk of Higher Volatility: Volatility refers to the dynamic changes in price that a security/derivatives contract undergoes when trading activity continues on the Stock Exchanges. Generally, higher the volatility of a security/derivatives contract, greater is its price swings. There may be normally greater volatility in thinly traded securities / derivatives contracts than in active securities /derivatives contracts. As a result of volatility, your order may only be partially executed or not executed at all, or the price at which your order got executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses. 1.2 Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and/or sell securities / derivatives contracts expeditiously at a competitive price and with minimal price difference. Generally, it is assumed that more the numbers of orders available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities / derivatives contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities / derivatives contracts purchased or sold. There may be a risk of lower liquidity in some securities / derivatives contracts as compared to active securities / derivatives contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all Buying or selling securities / derivatives contracts as part of a day trading strategy may also result into losses, because in such a situation, securities / derivatives contracts may have to be sold / purchased at low / high prices, 19

20 compared to the expected price levels, so as not to have any open position or obligation to deliver or receive a security / derivatives contract. 1.3 Risk of Wider Spreads: Spread refers to the difference in best buy price and best sell price. It represents the differential between the price of buying a security / derivatives contract and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for less liquid or illiquid securities / derivatives contracts. This in turn will hamper better price formation. 1.4 Risk-reducing orders: The placing of orders (e.g., stop loss orders, or limit orders) which are intended to limit losses to certain amounts may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders A market order will be executed promptly, subject to availability of orders on opposite side, without regard to price and that, while the customer may receive a prompt execution of a market order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded price or the best price in that security / derivatives contract A limit order will be executed only at the limit price specified for the order or a better price. However, while the customer receives price protection, there is a possibility that the order may not be executed at all A stop loss order is generally placed away from the current price of a stock / derivatives contract, and such order gets activated if and when the security / derivatives contract reaches, or trades through, the stop price. Sell stop orders are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the security / derivatives contract reaches the pre -determined price, or trades through such price, the stop loss order converts to a market/limit order and is executed at the limit or better. There is no assurance therefore that the limit order will be executable since a security / derivatives contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order. 1.5 Risk of News Announcements: News announcements that may impact the price of stock / derivatives contract may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or negative movement in the price of the security / contract. 1.6 Risk of Rumors: Rumors about companies / currencies at times float in the market through word of mouth, newspapers, websites or news agencies, etc. The investors should be wary of and should desist from acting on rumors. 1.7 System Risk: High volume trading will frequently occur at the market opening and before market close. Such high volumes may also occur at any point in the day. These may cause delays in order execution or confirmation During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in order execution and its confirmations Under certain market conditions, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding orders either on the buy side or the sell side, or if trading is halted in a security / derivatives contract due to any action on account of unusual trading activity or security / derivatives contract hitting circuit filters or for any other reason. 1.8 System/Network Congestion: Trading on exchanges is in electronic mode, based on satellite/leased line based communications, combination of technologies and computer systems to place and route orders. Thus, there exists a possibility of communication failure or system problems or slow or delayed response from system or trading halt, or any such other problem/glitch whereby not being able to establish access to the trading system/network, which may be beyond control and may result in delay in processing or not processing buy or sell orders either in part or in full. You are cautioned to note that although these problems may be temporary in nature, but when you have outstanding open positions or unexecuted orders, these represent a risk because of your obligations to settle all executed transactions. 20